10 Ways to Start Investing With Just $1,000 in 2024

You can start investing even if it’s just a smaller amount.

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Updated May 28, 2024
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Investing doesn't always require a substantial amount of capital. With as little as $1,000, you can kickstart your investment journey and work toward your financial goals.

Whether you're looking to build wealth, save for a specific goal, or simply grow your money, there are various avenues for individuals with a modest budget.

Here are 10 ways to start investing with just $1,000.

See if your groceries could be making you money

Everything’s more expensive now. Coffee. Gas. Groceries.

And if these sharp price spikes have been hurting your bank account, you’re probably looking for any chance to save … or at least cut back.

Here’s a little trick to help: Download Acorns, and you could start saving and investing for the long run with every morning coffee, gas station fill-up, or grocery store run.

With Acorns and the Round-Ups® feature, your daily purchases get rounded up to the next dollar. The “spare change” difference gets invested in expert-built investment portfolios1 … 100% on autopilot. Just shop like normal, and you can start saving and investing.

BONUS: Set up Recurring Investments and Acorns will give you a $20 bonus after you make your first successful Recurring Investment (minimum $5).

Download Acorns

Build an emergency fund using a high-yield savings account

Deemerwha studio/Adobe A young woman's hand placing coins in a glass jar on a table to save money for emergency situations.

Before delving into traditional investment avenues, prioritize building a financial safety net. Consider stashing a portion of your $1,000 in a top high-yield savings account to create an emergency fund.

High-yield savings accounts offer better interest rates than traditional savings accounts, allowing your emergency fund to grow steadily over time. This foundational step ensures that you have a financial cushion in place before venturing into more volatile investment options.

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Open a certificate of deposit (CD)

Andrii/Adobe certificate of deposit document on table

A certificate of deposit (CD) is a low-risk investment option suitable for those who prefer a fixed and predictable return. You can open a CD and lock in your funds for a specified period, ranging from a few months to several years.

CDs typically offer higher interest rates than regular savings accounts, making them an attractive choice for conservative investors. While your money is tied up for the agreed-upon duration, CDs provide a secure avenue for growing your initial investment.

Enroll in your company’s 401(k)

Vitalii Vodolazskyi/Adobe 401k plan document on table

If your employer offers a 401(k) plan, seize the opportunity to enroll and start investing for your retirement. Many companies provide matching contributions, supercharging your investment power.

Even with a small initial investment, your 401(k) contributions can benefit from compounding over the long term and benefit your long-term financial security.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.2

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Open an individual retirement account (IRA)

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Individual retirement accounts (IRAs) are versatile investment tools that provide tax advantages for retirement savings. With $1,000, you can open an IRA and choose between a traditional IRA and a Roth IRA, each offering distinct tax benefits.

IRAs allow you to invest in a variety of assets, including stocks, bonds, and mutual funds, providing flexibility to align your investments with your financial objectives.

Open a traditional brokerage account

WavebreakmediaMicro/Adobe Senior couple strategizing their investment plans.

For investors seeking flexibility and control over their investment decisions, a traditional brokerage account offers a direct route to the stock market.

You can open a brokerage account and start buying individual stocks, bonds, mutual funds, or other investments. This hands-on approach allows you to customize your investment portfolio according to your preferences.

While the stock market carries inherent risks, it also presents growth opportunities, making a brokerage account an accessible entry point for aspiring investors.

Pay down high-interest debt

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Before fully immersing yourself in investment ventures, consider addressing high-interest debt. Redirecting a portion of your $1,000 toward paying down outstanding debts, especially those with high interest rates, can reduce interest payments over time.

Crushing your debts not only improves your financial health but also sets the stage for more robust and sustainable investment strategies. Prioritize debts with the highest interest rates to optimize the impact on your overall financial well-being.

Invest in low-cost index funds

ipopba/Adobe stock market on digital tablet

Index funds provide an affordable and diversified approach to investing in the stock market. You can allocate your funds to low-cost index funds that track specific market indices, such as the S&P; 500.

These funds offer exposure to a broad range of stocks, spreading risk and minimizing the impact of individual stock fluctuations. Index funds are particularly suitable for investors looking for long-term steady growth.

Explore exchange-traded funds (ETFs)

maurice norbert/Adobe invest in portfolio diversity etf

ETFs share similarities with index funds but trade on stock exchanges like individual stocks. ETFs offer a diversified portfolio of assets, making them an attractive option for investors looking for broad market exposure.

Choose ETFs aligned with your investment objectives, whether focused on specific sectors, industries, or market themes.

Invest in individual stocks

insta_photos/Adobe trader analyzing financial trading

With a focused approach, $1,000 can be strategically invested in individual stocks of companies you believe in. Conduct thorough research, analyze financial performance, and consider long-term growth potential when selecting stocks.

Diversify your stock portfolio across different industries to mitigate risk. While investing in individual stocks requires careful consideration and monitoring, it provides hands-on experience and the potential for significant returns.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!3

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Educate yourself and seek professional guidance

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Knowledge is a powerful asset in the world of investing. Allocate a portion of your investment in financial education resources, books, and courses.

Understanding investment principles, market dynamics, and risk management enhances your decision-making capabilities and helps you move beyond living paycheck to paycheck.

Also, consider seeking advice from financial professionals or hiring a certified financial planner to provide personalized guidance.

Bottom line

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As you embark on your investment journey, remember that each financial decision contributes to your overall financial well-being.

The key is to align your investment strategies with your specific goals, risk tolerance, and time horizon. By taking deliberate steps and staying informed, you can leverage even a modest sum of $1,000 to build substantial wealth.

What financial goals do you aspire to achieve with your $1,000 investment? Consider the various investment options presented and envision how each strategy aligns with your aspirations and goals.

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Author Details

Adam Palasciano

Adam Palasciano is a personal finance-obsessed and money-savvy individual who loves to hash out content on all things saving money. He specializes in writing millennial-friendly personal finance content, covering topics ranging from trending financial news, debt, credit cards, cryptocurrency, and more.